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CIRCULAR No

CIRCULAR No.9-TC/CSTC OF FEBRUARY 2, 1996 PROVIDING DETAILED GUIDANCE ON THE USE OF REVENUE FROM FINES AGAINST ADMINISTRATIVE VIOLATIONS IN THE DOMAIN OF TRAFFIC ORDER AND SAFETY ON LAND ROADS AND IN URBAN AREAS

Inter-ministerial Circular No.77-TTLB/TC/NV of October 30, 1995 of the Ministry of Finance and the Ministry of the Interior "providing supplementary guidance on the collection and use of the fines against administrative violations in the domain of traffic order and safety on land roads and in urban areas", stipulated that: The whole amount of fines against violations of traffic order and safety on land roads and in urban areas collected by the central and local forces shall be concentrated into the State Budget through the system of State treasuries in order to supplement the expenditures on ensuring traffic order and safety on land roads and in urban areas. 30% shall be remitted to the Central Budget and 70% to the local budget.

In order to provide timely expenditures for the units engaged in maintaining traffic order and safety on land roads and in urban areas, the Ministry of Finance provides detailed guidance on the rate of distribution to these units of the whole amount of fines against administrative violations in the domain traffic order and safety on land roads and urban areas as follows:

1. The amount of collection (30%) to be concentrated into the Central Budget (considered as 100%) shall be distributed as follows:

- 20% as additional expenditures on the educational work, the printing of documents, the review of preliminary experience by the Central Traffic Safety Steering Commission.

- 40% as additional expenditures on the activities of the Ministry of the Interior.

- 20% as additional expenditures on the activities of the Ministry of Communication and Transport.

- 20% as additional expenditures on the activities of the Ministry of Finance (State Treasury).

2. The amount of collection (70%) to be remitted to the local budget (considered as 100%) shall be distributed as follows:

- 10% of the total remittances to be spent on education and popularization of the policy on strengthening local traffic order and safety including expenses for the operation works summing-up in the locality.

- Reserving not more than 40% of the total remittances for the forces taking part in the maintenance of traffic order and safety in the locality, including:

+ 20% of the total remittances to be spent for public security forces taking part within the territory of the locality.

+ 5% of the total remittances to be spent for the communication forces taking part within the territory of the locality.

+ 5% of the total remittances to be spent for the local forces in districts, communes, wards directly engaged in maintaining traffic order and safety.

+ 10% of the total remittances to be spent for the State Treasury implementing the collection of fines (including costs for the persons assigned by the State Treasury to collect fines).

- The remaining amount (at least 50% of the total remittances) to be reserved for the expenditures on strengthening the material basis and spendings necessary for maintaining traffic order and safety within the territory of the province or city.

3. The order of allocating funds, the specific contents of expenditures and the accounting of the use of the fines collected must comply with the stipulations of Inter-ministerial Ciscular No. 77-TTLB/TC/NV of October 30, 1995 of the Ministry of Finance and the Ministry of the Interior.

The portion of expenditures to remunerate the forces taking part in the maintenance of traffic order and safety shall be a maximum deduction. The unused remittances shall be shifted to expenditures on the equipment for the material basis to ensure traffic order and safety on land roads and in urban areas in the locality.

4. Every month, the Finance Service shall base itself on the amount of fines collected to allocate the expenditures to the units and disburse expenditures to the units according to the rate defined in this Circular. As for the remaining remittances (at the minimum 50% of the total remittances) reserved for strengthening the material basis and other necessary spendings to ensure traffic order and safety within the territory of the province and city, the Finance and Pricing Service shall allocate expenditures under the guidance of the provincial and municipal People�s Committees.

5. This Circular takes effect from January 1st, 1996. The Finance and Pricing Services of the provinces and cities directly under the Central Government and the State Treasury shall have to timely allocate expenditures for the units, not using this collection of fees for other purposes.

The Minister of Finance

HO TE